Kaine: 'You Don't Have To Do Exactly What I Ask, But Let's Act'

June 04, 2008|By Kimball Payne, kpayne@dailypress.com - 247-4765

VIRGINIA BEACH — Anti-tax protesters and signs were waiting for Gov. Timothy M. Kaine on Tuesday outside the Virginia Beach Convention Center, but inside Kaine found a cordial and fairly receptive audience for his push for more money for roads.

"You don't have to do exactly what I ask, but let's act," Kaine told the crowd of nearly 275 people including numerous local officials and lawmakers. "We've got to be willing to pay for what we want."

Tuesday night was Kaine's final swing through Hampton Roads before lawmakers gather in Richmond in late June to consider his plan to pump new cash into the state's beleaguered transportation network. Kaine has made nearly two dozen transportation-centric meetings during the past few months in an effort to build momentum for his plan.

Kaine wants lawmakers to raise the sales tax 1-cent in Hampton Roads and Northern Virginia and also wants a statewide 1-percent increase in the vehicle sales tax, which is currently 2 percent lower then sales taxes on other goods.

The governor's plan also adds $10 to the yearly car registration fee across the state and provides new money for transit by charging home sellers 25 cents for each $100 of assessed value.

Locally, the sales tax increase would be used to fund seven major road projects including widening Interstate 64 on the Peninsula and relieving congestion bottlenecks at the Hampton Roads Bridge-Tunnel.

"It would be raised in Hampton Roads and the Peninsula and stay in Hampton Roads and the Peninsula," Kaine said. "If we put our heads down it's going to get tougher and more expensive."

Virginia Beach resident Lynn Crawford came to the meeting to congratulate Kaine for his "courageous effort to get us out of this mess." But Crawford said he would prefer to see lawmakers raise the state gas tax so out-of-state drivers are forced to pay for improvements.

Kaine said he expects some lawmakers to put forward plans in Richmond that rely heavily on gas tax increases, but he believes that would trigger a hostile reaction from the House of Delegates, especially with prices reaching record heights.

"With gas prices at this level, I really felt it was not the time to raise gas taxes," Kaine said.

But not everyone agrees that higher taxes are the solution. Protesters set up signs along the street leading up to the meeting and wore stickers bearing the same crystal-clear motto - "No Kaine Tax Hike."

Bishop E. W Jackson Sr. warned that some of the members of his Chesapeake congregation cannot afford to fork over more tax money during these tough economic times, suggesting budget cuts instead.

"Is this the proper economic climate to talk about raising $1 billion in taxes?" asked Jackson, whose church has taken to handing out pre-paid gas cards to members. "Frankly, I think the taxpayer is tapped out."

Kaine countered that he cut the budget last fall by $300 million and early this year by another $1.4 billion and noted that major construction projects could actually be a boon for local workers and economies.

"There comes a time when you have to invest," Kaine said. "This could be a stimulus in a down time."

Wally Erb told Kaine he feels the taxes force middle class and low income residents to foot too much of the bill.

"Your plan suggests that we use regressive taxation," Erb said.

Kaine responded by pointing out that the sales tax increase would not be applied to food or drug prices - which he said dramatically levels the playing field.

Norfolk Mayor Paul Fraim, a longtime advocate of transportation improvements, wrapped up the event and received the loudest round of applause for suggesting that Kaine needs to go further.

"I'm not sure (your plan) it's aggressive enough," Fraim said. "This is not a wish list (of projects), this is a bare bones."